Break-Even Calculator
FreeCalculate your break-even point in both units and revenue using fixed costs, variable cost per unit, and selling price. Instantly see your contribution margin, contribution margin percentage, and whether your pricing is sustainable.
Rent, salaries, software subscriptions
Cost of goods, per-unit labour
Price charged to the customer
Enter your fixed costs, variable cost per unit, and selling price to calculate your break-even point.
How to use the Break-Even Calculator
- 1Enter your total monthly fixed costs — expenses that do not change with volume (rent, salaries, software subscriptions).
- 2Enter your variable cost per unit — costs that change with each unit produced or sold (materials, per-unit labour, packaging).
- 3Enter your selling price per unit — the price your customers pay.
- 4Review your contribution margin, contribution margin %, break-even units, and break-even revenue.
- 5If your contribution margin is negative, the tool will warn you — you must raise prices or cut variable costs before you can break even.
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Break-Even Calculator FAQs
What is the break-even point?
The break-even point is the number of units you need to sell (or the revenue you need to generate) to exactly cover all your costs — both fixed and variable — with zero profit or loss. Beyond break-even, every additional unit sold generates profit.
What is contribution margin?
Contribution margin is the amount each unit sold contributes toward covering fixed costs, calculated as Selling Price − Variable Cost per Unit. Once total contribution margin from all units equals your fixed costs, you have broken even.
How does pricing affect the break-even point?
Higher selling prices increase contribution margin per unit, which reduces the number of units you need to break even. Lower prices have the opposite effect. Even small price changes can dramatically shift your break-even point — this tool lets you model those scenarios.
What is a contribution margin percentage?
Contribution margin % (also called gross profit margin at unit level) is the proportion of each sale that covers fixed costs: (Price − Variable Cost) ÷ Price × 100. A 50% contribution margin means half of every sale goes toward fixed costs and profit.
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